Question: Submit Here are the expected cash flows for three projects: Check my work Project Yeart 0 -6,400 -2,400 - 6,400 Cash Flowe dollars) 1 2
Submit Here are the expected cash flows for three projects: Check my work Project Yeart 0 -6,400 -2,400 - 6,400 Cash Flowe dollars) 1 2 3 + 1,350 +1.350 + 3,700 0 +2.400 +2,700 + 1,350 +1,350 + 3,700 + 3,700 + 5,700 a. What is the payback period on each of the projects? b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? c. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 9%, calculate the NPV for projects A, B, and C. (Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to 2 decimal places.) d-2. Which projects have positive NPVS? e. "Payback gives too much weight to cash flows that occur after the cutoff date." True or false? Project A Years Project Years Project Years Payback period b. If you use the payback rule with a cutoff period of 2 years, which projects will you accept? C. If you use a cutoff period of 3 years, which projects will you accept? d-1. If the opportunity cost of capital is 9%, calculate the NPV for projects A, B and C d-2. Which projects have positive NPV? "Payback gives too much weight to cash flows that occur after the cutoff date." True or false
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